Finance Releases Cannabis Tax Plan Details

Finance Releases Cannabis Tax Plan Details

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Under the proposed framework, persons producing cannabis products will be subject to a federal excise duty equal to the greater of a prescribed flat rate per gram of cannabis product and 5% of the sale price of that product. An additional rate would apply in any province or territory that agrees to participate. The duties are intended to apply to all cannabis products available for legal purchase, including fresh and dried cannabis, cannabis oils and seeds or seedlings for home cultivation.

Finance released draft legislation on November 10, 2017 that sets out the proposed duty and licensing requirements within the cannabis supply chain. Finance is seeking input on these proposals by December 7, 2017.